NOC - No Objection Certificate
No Objection Certificate (NOC) is a legal document issued by any organization confirming that they have no objections to the information included in the document. This document is provided to avoid any further complaints in the future against an organization or individual related to the process or situation.
When is a No Objection Certificate issued?
An employee, landholder, renter, or individual may issue a NOC as a legal document in India. It can be used for a variety of purposes, including:
NOC is a critical legal document that can be used for or against applicants in a law court. The essential details of the parties involved are normally included in a No Objection Certificate, which is addressed to whoever is concerned.
No Objection Certificate is a legal document required for bank transactions, immigration, vehicle, home registration, and employment. For all these purposes, applicants can utilize the standard NOC format.
What are the circumstances in which a NOC is required?
A NOC is necessary for the following situations:
What is the significance of acquiring a NOC?
The NOC establishes that an individual, corporation, bank, or landlord has no objection to something being done or executed. A NOC will assist in getting out of any legal problems because it may be submitted in court to prove innocence.
What's the process to get NOC?
To receive a NOC from an authority, company, or institution, the applicant must write a letter requesting one, including contact information and an explanation of why they need NOC with all supporting documentation.
Validity of a NOC
A NOC is only valid for six months after it is issued.
What is a bank's NOC?
When a person applies for a home loan or a vehicle loan, the bank must provide a letter of authorization (NOC) to close the loan account. To fulfill the requisite loan closing processes, the bank must give a NOC. The NOC for the bank proves that the applicant has paid all loan EMI with all other unsettled loan requirements.
What is a vehicle's NOC?
A vehicle's NOC is a legal document provided by the regional RTO that allows a vehicle to be re-registered from one state to another. The NOC is a necessary document that indicates that the vehicle has no outstanding tax obligations. It should be noted that driving own car for traveling in another state for less than three months doesn't need a NOC.
Why is a No Objection Certificate required for company registration?
When a firm rents or leases space and plans to use it as its registered office, it must obtain a letter of authorization (NOC) from the landlord. The NOC is a crucial document that certifies that the landlord has no objections to a company renting the space. The landlord's letter of authorization must be given to the Registrar of Companies when registering for company registration.
Who issues a No objection certificate for building construction?
Before constructing a building, many authorities and government departments must give their approval. The fire department should issue a letter of approval for high-rise flats and buildings. After the authority has evaluated and authorized the building plan, the chief fire officer issues the NOC for construction.
In India, it's important to get signed a no-objection certificate from several agencies and government departments when building a house, an apartment complex, or any other project.
Certain types of buildings require a NOC from the fire department, according to the Development Control Regulations and the National Building Code, 2016. High-rise structures, for example, structures that are 15 meters above ground level or have more than three floors. Before beginning construction, they must get a certificate of approval from the Director of the Fire Department.
The chief fire officer issues the no-objection certificate once the construction plan gets granted by the sanctioning authority for construction.
Under RERA, a certificate of no objection is issued.
Before transferring, a developer or promoter must get written consent from two-thirds of the allottees transferring liabilities relating to a real estate project to a third party, according to Section 15 of the RERA (Real Estate Regulator Authority). The RERA authorities will issue an equivalent certificate if the allottees have granted the NOC.
Why is No Objection Certificate required from the legal beneficiary property owner in India?
Once legal heir gets property by the original owner of the property, then they need to safeguard their property. This process is done in the presence of a will. If the property was inherited rather than purchased, legal heirs can challenge the will. One of the documents required for the transfer of a property is a no-objection certificate from other legal heirs, as well as an affidavit. If any type of consideration, in-kind, or currency is paid to any heir or claimant in exchange for their share, it must get disclosed.
If any heir or claimant has received any consideration, in-kind or cash, for acquiring their share, it must be noted in the transfer paperwork. In addition, the release document for the transfer of a share must be registered.
With the introduction of the Hindu Succession Act, 1956, a woman in a family can claim an equal portion of a property unless the father has made a will to distribute the property. According to the new amendment, if a woman was born before the year 2005, she has the right to claim the property. However, there are still many instances where women are denied a portion of their father's assets. In this situation, no objection certificate is required from her side.
In such instances, when her share of the assets must be assigned to one of the family members as part of the asset division process, a no-objection certificate is required . A no-objection certificate for property transfer can be signed to transfer property. The other option is to sign a relinquishment deed.
Suppose a legal heir desires to relinquish their claim to a property portion. In that case, they must present a NOC certificate in favor of family members who are also legal heirs, stating the same in the document. In the future, this person's children will not establish a claim on the property.
Transferring property, a no-objection certificate required
A NOC is a legal document that specifies information about the property. In real estate deals, a NOC confirms that the applicant won't face any legal issues after the deal is made.
The government has the authorization to monitor the legal process of the No Objection Certificate; that's the reason all property transfer and land registration are done under this. Obtaining NOCs from the relevant departments is required to transfer land or develop a colony.
Under Section 21 of the Registration Act of 1908, a NOC from the authority is required to transfer permanent property or land. The procedure for transferring land or property is submitting an application for a land transfer NOC, along with the needed papers and costs, to the appropriate Circle Office. The deputy commissioner will issue the NOC certificate. After receiving the NOC for land, the applicant can proceed with property registration and mutation.
Certificate of no objection to the usage of the property
When a tenant, generally a company, signs a lease agreement and plans to use the property as a registered office, the landlord must provide a No Objection Certificate. Before establishing the office, the company needs first to secure the NOC.
NOC needs to declare from landlords that they intend to rent their property to the company. It justifies landlord has no opposition if the applicant uses its premises or a part of it.
When is a certificate of no objection issued?
When applicant make an offer, make a business contract, or is part in a transaction, then they will need a NOC. In real estate, a property buyer must obtain a NOC certificate from a government agency or a prior owner to certify that the property is free of legal encroachments.
What is the significance of a NOC?
A NOC validates that the application has no objection. Legal support can be used in times of legal chaos in front of court to prove innocence.
Obtaining a NOC from bank or lending institution, for example, once the applicant's home loan has been settled, will allow collecting all the property's legal documentation without difficulty. A NOC can also aid in the removal of a lien on the property.
NOCs that are common
What is the process to obtain a No Objection Certificate?
Applicant must write a letter to an authority, organization, or institution requesting a No Objection Certificate, stating applicant's details, and explaining importance of NOC. It's also crucial to provide all supporting documentation.
What is a bank's no objection certificate?
It's just as important to follow the proper procedures when applying for a home loan as it is to complete the essential home loan closing formalities. In this process, it's necessary to receive NOC after the applicant has settled all loans taken from the bank. It is a proof that all loan EMIs are paid, and no more due is left to return to the bank.
The format of NOC is given below:
Name of the landowner.
Name of the company to whom property is rented.
Address of the property.
Date and place.
Landlord's sign with contact details.